EU will bail out Italian banks to curtail China intervention

The June jobs number came in at an astonishing 287K, more than 100K from the analysts projections.

Need to dig into the data, but I believe the number may be skewed the same way May’s number was by the Verizon workers going on strike in May and settling in June.

In the grand scheme of things this number alone will not move  Janet Yellen off her pause on rate hikes.


US markets are breathing a sigh of relief before the jobs number release on Friday, since no European banks suffered a catastrophic loss this week.

As Deutsche Bank and multiple Italian banks including Monte Paschi of Seina, were able to keep their doors open for another week, institutional investors sold off the dollar slightly giving the beaten up crude sector a little push.

The fact that regulators allowed the Italian banks to stress test themselves — without anyone on the outside knowing what the stress levels were — and tell the world they passed is laughable.

The market news that China is offering “aid” AKA bail out to Italian banks in defiance of Germany and the EU. This is the biggest movement, because it comes as EU now has a rival messing with its policy. Coming off of Brexit, Brussels and Frankfurt may be forced to move on aid to Italian banks to “save face.”

 

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